Amazon to Acquire Globalstar: A Leap into Satellite Connectivity

Amazon's Senior Vice President of Devices & Services, Panos Panay, articulated the company's ambition, stating, “There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks…” The integration of Globalstar’s expertise with Amazon’s innovative culture aims to offer faster, more reliable services, especially to Apple users through the Leo D2D system.

Globalstar is recognized as a leading mobile satellite services (MSS) operator, specializing in non-geostationary orbit (NGSO) technologies. The merger will see Amazon acquire Globalstar’s existing satellite operations and infrastructure, including valuable MSS spectrum licenses. This combination aims to enhance connectivity for consumers, enterprises, and government customers, particularly those in remote locations or transitioning between conventional cellular networks.

Paul Jacobs, CEO of Globalstar, emphasized the importance of this partnership, stating, “For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation…” The collaboration with Amazon is expected to drive innovations in digital connectivity and deliver unprecedented service levels to customers.

Starting in 2028, Amazon Leo plans to deploy its next-generation D2D satellite system, which will offer advanced voice, data, and messaging services to mobile devices. The new system is designed to utilize spectrum more efficiently, translating into enhanced speed and performance for users. This unified network will integrate fixed and mobile satellite services, comprising thousands of advanced satellites in low Earth orbit, supporting hundreds of millions of customer endpoints globally.

In conjunction with the Globalstar acquisition, Amazon has also reached an agreement with Apple to provide satellite connectivity for iPhone and Apple Watch models. Globalstar has previously partnered with Apple for satellite services on newer devices, allowing features like Emergency SOS via satellite. This new agreement ensures that users will continue to benefit from crucial satellite capabilities, enhancing user safety and connectivity even in remote areas.

Apple's Senior Vice President of Worldwide Product Marketing, Greg Joswiak, highlighted the success of their existing emergency services, noting how the partnership has already saved lives. He expressed optimism about the extended collaboration with Amazon Leo to further enhance user safety and connectivity.

The merger is expected to foster innovation and competition within the satellite and telecommunications sectors. The combined resources of Amazon and Globalstar will accelerate the deployment of D2D connectivity, particularly in regions where traditional network expansion is challenging or costly.

The anticipated benefits of this collaboration include:

As part of the acquisition, Globalstar stockholders will have the option to receive either $90.00 in cash or 0.3210 shares of Amazon common stock, capped at $90.00 per share. Notably, this transaction is subject to a proration mechanism that limits cash elections and includes a potential adjustment of up to $110 million based on Globalstar meeting certain operational milestones.

The transaction has garnered support, with approximately 58% of Globalstar stockholders approving the merger. It is expected to close in 2027, contingent on regulatory approvals and the fulfillment of specific milestones by Globalstar.

Amazon's acquisition of Globalstar marks a significant step toward enhancing global connectivity through advanced satellite technology. By leveraging Globalstar's established infrastructure and expertise, Amazon Leo aims to bridge connectivity gaps for millions of users worldwide. As this merger progresses, it promises to reshape the landscape of satellite communications, driving innovation and expanding access to vital services for consumers and businesses alike.